Nature and Biodiversity

A new EU directive will require companies to prove their green credentials. Here's how

Even well-established labels and certifications aligned with the Empowering Consumers Directive are sometimes viewed as liabilities rather than assets.

The EU's Empowering Consumers for the Green Transition Directive is aimed at making sustainability claims more transparent and trustworthy. Image: Reuters/Luc Gnago

Santiago Gowland
Chief Executive Officer, Rainforest Alliance
This article is part of: Centre for Nature and Climate
  • The EU's Empowering Consumers for the Green Transition Directive means companies have to reassess how they communicate sustainability.
  • The legislation aims to help consumers to make more informed choices, but many companies are being cautious amid concerns about greater scrutiny.
  • This means that independently backed claims about environmental standards and sustainability will be key to give companies a competitive edge.

With European Union member states set to transpose the Empowering Consumers for the Green Transition Directive (EmpCo) into national law ahead of the rules coming into force in September, companies across Europe are reassessing how they communicate sustainability.

The Empowering Consumers Directive is designed to clean up the consumer-facing product marketplace by targeting vague environmental claims and sustainability labels that lack independent verification – giving shoppers confidence in the claims that remain. It prohibits generic sustainability and climate-related claims, so consumers can make informed choices without wading through greenwashing.

For many companies, however, the immediate reaction has been caution. Legal teams scrutinize packaging, marketing departments pull back on broad claims and sustainability leads ask whether it is safer to say less, with a notable increase in case law related to greenwashing expected. Amid confusion, even well-established labels and certifications aligned with EmpCo are sometimes viewed as liabilities rather than assets.

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But silence carries measurable costs. More than half (53%) of consumers worldwide see a lack of sustainability communication as a sign of inaction or concealment. Companies that hold back also tend to lag financially, while as much as 31% of leading companies’ reputational edge is driven by how they are perceived on environmental issues.

The instinct to pull back is understandable, but misguided. The rules penalize vague or misleading claims – not genuine sustainability. The era of self-declared, loosely defined environmental language is closing, while verifiable, independently backed claims are becoming essential. This is precisely where credible third-party certification becomes more valuable than ever before.

Empowering consumers to make sustainable purchasing choices

The new directive requires sustainability labels to be backed by independent third‑party certification, and sets specific rules for certain types of environmental claims. It also limits the proliferation of private sustainability labels that lack robust governance and transparency.

In effect, the directive does exactly what it says on the tin – empowers consumers to make purchasing decisions they can trust. Companies that cannot demonstrate rigorous standards, oversight and assurance mechanisms will struggle. Those that can, will prosper.

A certification such as the Rainforest Alliance seal is far more than a label. Our programme is built on a well-governed standard, independently audited farms and supply chains, traceability requirements and criteria that continuously evolve.

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The Rainforest Alliance seal aligns with key EmpCo requirements and meets its definition of a certification scheme.

Crops sourced through our Sustainable Agriculture Certification are produced according to rigorous environmental, social and economic requirements that protect forests and biodiversity, improve livelihoods and climate resilience, and respect human rights. Our recently launched Regenerative Agriculture Certification helps farms give back to nature more than they take by deepening criteria linked to soil health and fertility, biodiversity conservation and climate resilience, while still meeting foundational social and livelihood requirements.

Companies using our certification seals thereby demonstrate that certified ingredients are sourced in line with a recognized framework addressing deforestation, climate resilience, biodiversity and human rights, with compliance independently verified by accredited auditors. This credibility builds consumer trust and a competitive edge.

Why companies need to invest in sustainability systems

Businesses now face a choice: retreat into silence to avoid scrutiny or invest in systems that back up their words with action. The former may reduce short-term risk, but it does little to build trust. The latter requires more discipline, but it creates a defensible foundation for claims in any market.

It is also worth taking a moment to remember who this directive is empowering. Instead of retreating or overcomplicating claims, companies should focus on the real demand driving the directive.

Consumers are not asking for fewer sustainability commitments; they are asking for honesty and evidence. Investors and regulators are doing the same.

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A credible third-party certification provides a layer of governance between a company’s ambition and its public messaging. It reduces the burden on individual brands to design and defend their own claim frameworks from scratch. It also distributes responsibility across a multi-stakeholder system that includes farmers, auditors, standard setters and civil society.

Some critics argue that labels create legal exposure under stricter claim rules. The opposite is more likely to be true. The real exposure lies in unsupported assertions or proprietary badges that lack transparency. A well-governed certification scheme, aligned with evolving EU requirements and backed by documented criteria and assurance processes, offers a structured way to demonstrate due diligence to consumers.

For companies operating in complex global supply chains, this is not a theoretical debate. It is about how to continue communicating sustainability progress in a way that meets regulatory expectations.

Sustainability certification builds trust with consumers

The Empowering Consumers for the Green Transition Directive signals that environmental messaging must be grounded in evidence and oversight. Certification, when robust and transparent, is one of the few tools specifically designed to provide exactly that.

The Rainforest Alliance’s green frog seal on packaging is not simply a symbol. It represents a system of standards, audits and traceability that can withstand scrutiny. In a marketplace where claims must be proven, robust verification is a risk management strategy that strengthens every claim companies make.

Rather than stepping back, companies should ask: do we have the evidence, governance and independent verification to stand behind what we say? Rigorous third-party certification gives them the confidence to answer yes.

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